Gold holds gains from longest rally since 2012 on US rate hopes

Gold stood firm near a 2-1/2 week high on Thursday, holding gains from its longest winning streak since 2012 as soft U.S. data boosted expectations the Federal Reserve would keep interest rates low for the time being.

The metal had risen for six straight days to Wednesday, its longest winning stretch since August 2012.

Saudi Arabia announced on Wednesday it had launched military operations in Yemen, carrying out air strikes in coordination with a 10-country coalition seeking to beat back Houthi militia forces besieging the southern city of Aden where the country's president had taken refuge.

Data on Wednesday showed U.S. business investment spending plans fell for a sixth straight month in February, leading economists to further lower their first-quarter growth estimates.

Softer economic growth could prompt the Fed to delay raising interest rates until later in the year.

Markets had expected U.S. rates, currently near zero, to be increased by the Fed from June, but last week's caution has many thinking that a rate increase would not come until September.

Elsewhere, silver futures for May delivery eased 0.16% to $16.973 a troy ounce.

Copper futures for May delivery fell 0.14% to 2.785 a pound. Earlier this week, copper reached a three-month high at $2.945.